Takafumi Horie has stepped down as president of Japanese internet firm Livedoor, after being arrested amid claims of misleading shareholders. Livedoor executive Kozo Hiramatsu replaces Mr Horie, who was arrested on Monday with three other executives. Earlier on Tuesday, the Tokyo Stock Exchange said it would begin monitoring Livedoor, alerting investors that the company may be delisted. Despite the special watch, trading will continue in Livedoor shares. The allegations that Livedoor executives had spread false financial information about their company were central to last week's share sell-off that forced the Tokyo stock market to close early for the first time in its history. Livedoor's shares continued to slide and dropped by 31% to 176 yen on Tuesday.